Fed Moves Spark Corporate Bond Rally

Prices for debt from companies including Ford jump on Fed plans to buy bonds from so-called fallen angels

Investors snapped up the debt of car makers, oil drillers and other wounded companies after the Federal Reserve said it would lend trillions more to support the U.S. economy.

The Fed’s new lending programs are aimed at commercial loans, mortgages, cities, states and companies. They helped push up the iShares iBoxx $ High Yield Corporate Bond ETF, an exchange-traded fund tracking junk bonds, 6.6%, according to FactSet. The iShares investment-grade bond ETF rose 4.7%.